$150 million Hacked from KuCoin’s Exchange

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • KuCoin updated on its official site that on September 25, 2020, they detected a large withdrawal of several currencies
  • KuCoin also claimed in their report to the users to rely on them for if their funds are affected due to that incident
  • Value of KuCoin(KCS) dropped by 14% to $0.86 after the news went viral

Hacking was before known for intellectual curiosity and now is a big business. kuCoin a global cryptocurrency exchange with the tagline of more advanced and secure exchange to trade digital currency has been hacked and around $150 million have left the exchange at once. 

The company updated on its official site that on September 25, 2020, they detected a large withdrawal of several currencies like BTC, ERC-20 and other tokens from their hot wallets were transferred, according to their latest internal security audit report. And also mentioned that their cold wallets are safe and hot wallets have been re-deployed.

Users Rest Assured

KuCoin also claimed in their report to the users to rely on them for if their funds are affected due to that incident then, it will be covered by them and from their insurance fund. For the security of users’ funds they will conduct a thorough security review. And the services will be disabled during that period. And will be restored gradually after ensuring the safety. They will take the full responsibility and maintain transparency. 

How it Revealed

After the incident, the next day people started to complain about their funds, according to a tweet of beta.mycrypto.com, people started to complain about their funds which are missing and some are telling that everything is fine, and so the company gave suggestions that the transactions were simply pending. Link to the Tweet.

After all this they identified that the tokens have been moved to a different address, which concludes that the address received a transaction of 11,480.904914512565672921 ETC with the mixture of many tokens.

After all this a tweet revealed from CryptoQuant, a cryptodata company, that the outflow of BTC from the company has increased rapidly and became to zero, since the incident happened the outflow is continuously zero as per this chart. The CEO of this company highlighted that it is a sign of hacking 

KuCoins CEO Johnny Lyu on 26th of September,12:30 (UTC+8) providing details on the issue. He highlighted that they shutdown their servers, but the transfers continued as the key to the hot wallet had been compromised.

But we can conclude after everything happened, that the company is assuring it’s customers and doing it’s best to keep them updated and wants them to support the company. After the news got viral on social media the value of KuCoin(KCS) dropped by 14% to $0.86, that to within an hour.

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